Did Bill Ackman Give Up on Netflix Too Soon?
It's been four months since Pershing Square's Bill Ackman unloaded his short-lived stake in Netflix (NASDAQ: NFLX). He sold the position on April 20, as the stock plummeted following a brutal quarterly report for the leading premium streaming service. Netflix stunned the market with a sequential dip in global subscribers, forecasting a much larger decline for the second quarter.
Ackman held Netflix for less than three months, and it proved costly. The stock's swift decline accounted for a 400-basis-point hit on Pershing Square's performance. The hedge fund's filing this week confirms the April sale, and that Ackman didn't buy back into the company.
It's a shame. Depending on when someone cut Netflix loose on April 20, the shares are 2% to 17% higher as of Monday's close. This doesn't mean that Pershing Square is feeling any seller's remorse (at least not yet). Many of Ackman's investments in his concentrated portfolio have fared better. However, with some interesting catalysts working Netflix's favor, it could be more than just the recent gains that he will be missing out on.
Source Fool.com
